**GAO-03-90**                      Published: Dec 09, 2002. Publicly Released: Jan 06, 2003.                  

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## Highlights

The Small Business Administration (SBA) has increased its reliance on private lenders to provide small businesses with access to credit. The 7(a) program is SBA's largest business loan program, and SBA has established a preferred lender program (PLP) in which eligible lenders make 7(a) loans without prior SBA approval. SBA guaranteed $9.9 billion in 7(a) loans in 2001. Because lenders are exercising greater autonomy in making 7(a) loans, effective lender oversight is essential to SBA's success in achieving its mission. GAO evaluated SBA's 7(a) lender oversight and reviewed its organizational alignment for conducting PLP and Small Business Lending Company (SBLC) oversight.

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## Topics

Business Regulation and Consumer Protection

Program evaluationRisk managementSmall business loansSmall business assistanceCreditLending institutionsSmall businessFinancial risksPerformance measurementUnderwriting standards